SlideShare a Scribd company logo
1 of 25
Subset of Lean and Kanban
slides with Don Reinertsen 2nd
Gen Lean Prod Dev Principles
Do any of these sound familiar?
• “We’ve done Scrum for a long time now and our process
improvement has levelled off. How can we take our process
to the next level?”
• “Our needs and priorities shift on a daily basis”
• “We don’t like fixed-length, fixed-commitment iterations”
• “We are spending too much time long-range planning and
estimating when these plans end up changing in the short-
run and are never realized”
Scrum vs. Kanban
Scrum Kanban
Process tool based in Lean and Agile
principles
Process tool based in Lean and Agile
principles
Empirical process Empirical process
Plans work in time-boxes called Sprints with
prescribed activities at beginning and end
of each Sprint
Is a flow-based model with no prescribed
ceremonies. Team can choose to do
ceremonies whenever they deem necessary
Places a WIP limit on the amount of work to
be completed in a Sprint (Sprint Backlog
based on Velocity)
Places WIP limits on each workflow state
3 specific roles No specific roles
Prescribes sizing work items which is then
measured as Velocity
Measures lead time (time it takes for item
to go through the entire workflow) without
sizing work items (and cycle time)
Source: http://www.infoq.com/minibooks/kanban-scrum-minibook
Scrum
Kanban
Practice Maturation
http://www.continuousautomation.com/
6%
28%
34%
23%
3%
1%
3%
0%
0%
5%
10%
15%
20%
25%
30%
35%
40%
DevOps & CD: a prerequisite for cloud native
5Source: 451 Research/Red Hat, Q1 2016, n=201
DevJam Docker Jam Session, December 2016
ScrumKanban
Kanban Board Example 1
Kanban Board Example 2
Kanban Board Example 3
Task Board Example 1
Task Board Example 2
Kanban Board Example 4
TFS Lead Time and
Work In Progress
Effect of Capacity Utilization
10 20 30 40 50 60 70 80 90 100
05101520
QueueSize
% Capacity UtilizationDon Reinertsen’s 2GLPD
Why Queues Matter
• Queues Create…
• Longer cycle time
• Lower Quality
• More variability
• Increased risk
• More overhead
• Less motivation
Managing queues is the key to improving product development economics
Don Reinertsen’s 2GLPD
3. Exploit Variability
• Manufacturing wants reduce variability
• Product development needs variability in order to innovate
• We need to understand what makes variability valuable and manage
our process to create these conditions
• We need a development process that functions in the presence of
variability
Don Reinertsen’s 2GLPD
4. Enable Smaller Batches
• When work products are invisible, batch sizes are invisible
• When batch sizes are invisible, product developers pay little attention
to them
• Many companies institutionalize large batch sizes
• Batch size reduction is attractive because it is fast, easy, cheap,
granular, leveraged, and reversible
• It is a great starting point for LPD
Batch Size Queues Cycle Time
X 0.5 X 0.5 X 0.5Don Reinertsen’s 2GLPD
Drawing Review Process
200
10 Weeks
20
1 Week
Unreviewed Drawings
Large Batch Small Batch
Don Reinertsen’s 2GLPD
Benefits of Small Batch Testing
Higher ValidityFewer Open Bugs
Faster Cycle Time
Early Feedback
Less Debug Complexity
More Efficient Debugging
More Uptime
Smaller Change
Fewer Status Reports
Less Requirement Changes
Faster Learning
Lower Cost Changes
Cheaper Debugging
Cheaper Testing
Less Non-Value-Added
Better Code
Cheaper Correction
Better
Economics
Don Reinertsen’s 2GLPD
Little’s Formula
• By constraining WIP in development processes we can control cycle
time
• This approach, which is known as Lean Kanban, is currently growing
rapidly in software development
https://en.wikipedia.org/wiki/Little%27s_law
MeanResponseTime = MeanNumberInSystem / MeanThroughput
Control Number of Active Projects
1
2
3
4
1
2
3
4
COD Savings of Project 1 and 2 Late Start Advantages for Project 3 and 4
Time to Deliver
Time to Deliver Time to Deliver
Don Reinertsen’s 2GLPD
Avoid Long Planning Horizons
• The further out you plan, the less likely your forecast will be accurate
• Don’t do detailed analysis on things beyond a quarter
• Market conditions change everyday, this can change requirements
• Changing requirements cause churn (waste)
Don Reinertsen’s 2GLPD
Visual WIP Control Boards
Ready Queue Coding Ready to Test Testing Done
WIP constraints = 10
13
14
15
16
11
10
9
8
7
6
5
4
3
2
112
?
Don Reinertsen’s 2GLPD
6. Sequence Work Correctly
• The sequence in which work is processed is called the queuing
discipline
• By changing the queuing discipline we can reduce the cost of a queue
without decreasing the size of the queue
• Since manufacturing has homogeneous flows it always uses FIFO
(First-In-First-Out)
• For the non-homogeneous flows of product development other
approaches have better economics
Don Reinertsen’s 2GLPD
Use FIFO for Homogeneous Flow
First-In First-Out
Cost
of
Delay
1
2
3
A
B
Time
Cost
Delay Cost
Last-In First-Out
Cost
of
Delay 1
2
3
A
B
Time
Cost
Project Duration Cost of Delay
1 3 3
2 3 3
3 3 3
Don Reinertsen’s 2GLPD
Weighted Shortest Job First (WSJF) for
Non-homogenous flow
High Weight First
Cost
of
Delay
1
2
3
A
B
Time
Cost
Delay Cost
Low Weight First
Cost
of
Delay
A
B
Time
Cost
Project Duration Cost of
Delay
Weight =
COD/Duration
1 1 10 10
2 3 3 1
3 10 1 0.1
1
2
3
160 7
96 % Reduction in COD
Don Reinertsen’s 2GLPD

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Short lean kanban training with Don Reinertsen's Lean Product Development Principles

  • 1. Subset of Lean and Kanban slides with Don Reinertsen 2nd Gen Lean Prod Dev Principles
  • 2. Do any of these sound familiar? • “We’ve done Scrum for a long time now and our process improvement has levelled off. How can we take our process to the next level?” • “Our needs and priorities shift on a daily basis” • “We don’t like fixed-length, fixed-commitment iterations” • “We are spending too much time long-range planning and estimating when these plans end up changing in the short- run and are never realized”
  • 3. Scrum vs. Kanban Scrum Kanban Process tool based in Lean and Agile principles Process tool based in Lean and Agile principles Empirical process Empirical process Plans work in time-boxes called Sprints with prescribed activities at beginning and end of each Sprint Is a flow-based model with no prescribed ceremonies. Team can choose to do ceremonies whenever they deem necessary Places a WIP limit on the amount of work to be completed in a Sprint (Sprint Backlog based on Velocity) Places WIP limits on each workflow state 3 specific roles No specific roles Prescribes sizing work items which is then measured as Velocity Measures lead time (time it takes for item to go through the entire workflow) without sizing work items (and cycle time) Source: http://www.infoq.com/minibooks/kanban-scrum-minibook
  • 5. 6% 28% 34% 23% 3% 1% 3% 0% 0% 5% 10% 15% 20% 25% 30% 35% 40% DevOps & CD: a prerequisite for cloud native 5Source: 451 Research/Red Hat, Q1 2016, n=201 DevJam Docker Jam Session, December 2016 ScrumKanban
  • 12. TFS Lead Time and Work In Progress
  • 13. Effect of Capacity Utilization 10 20 30 40 50 60 70 80 90 100 05101520 QueueSize % Capacity UtilizationDon Reinertsen’s 2GLPD
  • 14. Why Queues Matter • Queues Create… • Longer cycle time • Lower Quality • More variability • Increased risk • More overhead • Less motivation Managing queues is the key to improving product development economics Don Reinertsen’s 2GLPD
  • 15. 3. Exploit Variability • Manufacturing wants reduce variability • Product development needs variability in order to innovate • We need to understand what makes variability valuable and manage our process to create these conditions • We need a development process that functions in the presence of variability Don Reinertsen’s 2GLPD
  • 16. 4. Enable Smaller Batches • When work products are invisible, batch sizes are invisible • When batch sizes are invisible, product developers pay little attention to them • Many companies institutionalize large batch sizes • Batch size reduction is attractive because it is fast, easy, cheap, granular, leveraged, and reversible • It is a great starting point for LPD Batch Size Queues Cycle Time X 0.5 X 0.5 X 0.5Don Reinertsen’s 2GLPD
  • 17. Drawing Review Process 200 10 Weeks 20 1 Week Unreviewed Drawings Large Batch Small Batch Don Reinertsen’s 2GLPD
  • 18. Benefits of Small Batch Testing Higher ValidityFewer Open Bugs Faster Cycle Time Early Feedback Less Debug Complexity More Efficient Debugging More Uptime Smaller Change Fewer Status Reports Less Requirement Changes Faster Learning Lower Cost Changes Cheaper Debugging Cheaper Testing Less Non-Value-Added Better Code Cheaper Correction Better Economics Don Reinertsen’s 2GLPD
  • 19. Little’s Formula • By constraining WIP in development processes we can control cycle time • This approach, which is known as Lean Kanban, is currently growing rapidly in software development https://en.wikipedia.org/wiki/Little%27s_law MeanResponseTime = MeanNumberInSystem / MeanThroughput
  • 20. Control Number of Active Projects 1 2 3 4 1 2 3 4 COD Savings of Project 1 and 2 Late Start Advantages for Project 3 and 4 Time to Deliver Time to Deliver Time to Deliver Don Reinertsen’s 2GLPD
  • 21. Avoid Long Planning Horizons • The further out you plan, the less likely your forecast will be accurate • Don’t do detailed analysis on things beyond a quarter • Market conditions change everyday, this can change requirements • Changing requirements cause churn (waste) Don Reinertsen’s 2GLPD
  • 22. Visual WIP Control Boards Ready Queue Coding Ready to Test Testing Done WIP constraints = 10 13 14 15 16 11 10 9 8 7 6 5 4 3 2 112 ? Don Reinertsen’s 2GLPD
  • 23. 6. Sequence Work Correctly • The sequence in which work is processed is called the queuing discipline • By changing the queuing discipline we can reduce the cost of a queue without decreasing the size of the queue • Since manufacturing has homogeneous flows it always uses FIFO (First-In-First-Out) • For the non-homogeneous flows of product development other approaches have better economics Don Reinertsen’s 2GLPD
  • 24. Use FIFO for Homogeneous Flow First-In First-Out Cost of Delay 1 2 3 A B Time Cost Delay Cost Last-In First-Out Cost of Delay 1 2 3 A B Time Cost Project Duration Cost of Delay 1 3 3 2 3 3 3 3 3 Don Reinertsen’s 2GLPD
  • 25. Weighted Shortest Job First (WSJF) for Non-homogenous flow High Weight First Cost of Delay 1 2 3 A B Time Cost Delay Cost Low Weight First Cost of Delay A B Time Cost Project Duration Cost of Delay Weight = COD/Duration 1 1 10 10 2 3 3 1 3 10 1 0.1 1 2 3 160 7 96 % Reduction in COD Don Reinertsen’s 2GLPD

Editor's Notes

  1. This could be turned into a large or small group discussion, rather than have it all presented as a lecture. If in a small group discussion format, once the groups have time to discuss, each group can share with the whole class 1 or 2 items they came up with. The instructor can then fill out any areas they missed or correct any misunderstandings.
  2. Q: “Approximately how often do you deploy software applications to production?” Audience: People influential in cloud-services development
  3. There can be a variety of columns teams may choose to use, all depending on their states in their workflow process. If they choose to have columns representing different activities, such as development, testing, user sign-off, the team must remain disciplined so as not to associate those activities with specific roles or individuals on the teams. Although people have specific skillsets, the whole team must work together to complete a work item and move it all the way across the board. Each column has a specified WIP limit in order to streamline the flow of items through the wholeflow work state.
  4. There can be a variety of columns teams may choose to use, all depending on their states in their workflow process. If they choose to have columns representing different activities, such as development, testing, user sign-off, the team must remain disciplined so as not to associate those activities with specific roles or individuals on the teams. Although people have specific skillsets, the whole team must work together to complete a work item and move it all the way across the board. Each column has a specified WIP limit in order to streamline the flow of items through the wholeflow work state.
  5. There can be a variety of columns teams may choose to use, all depending on their states in their workflow process. If they choose to have columns representing different activities, such as development, testing, user sign-off, the team must remain disciplined so as not to associate those activities with specific roles or individuals on the teams. Although people have specific skillsets, the whole team must work together to complete a work item and move it all the way across the board. Each column has a specified WIP limit in order to streamline the flow of items through the wholeflow work state.
  6. There can be a variety of columns teams may choose to use, all depending on their states in their workflow process. If they choose to have columns representing different activities, such as development, testing, user sign-off, the team must remain disciplined so as not to associate those activities with specific roles or individuals on the teams. Although people have specific skillsets, the whole team must work together to complete a work item and move it all the way across the board. Each column has a specified WIP limit in order to streamline the flow of items through the wholeflow work state.
  7. There can be a variety of columns teams may choose to use, all depending on their states in their workflow process. If they choose to have columns representing different activities, such as development, testing, user sign-off, the team must remain disciplined so as not to associate those activities with specific roles or individuals on the teams. Although people have specific skillsets, the whole team must work together to complete a work item and move it all the way across the board. Each column has a specified WIP limit in order to streamline the flow of items through the wholeflow work state.
  8. There can be a variety of columns teams may choose to use, all depending on their states in their workflow process. If they choose to have columns representing different activities, such as development, testing, user sign-off, the team must remain disciplined so as not to associate those activities with specific roles or individuals on the teams. Although people have specific skillsets, the whole team must work together to complete a work item and move it all the way across the board. Each column has a specified WIP limit in order to streamline the flow of items through the wholeflow work state.
  9. Assumes M/M/1/~ Queue, p = Capacity Untilization Instead of the deterministic view that we should load to 100% of capacity, Roe formal says the queue starts to double for every next level of utilization saught once you get around 70 of capacity. Control queue size to optimize cycle-time. Little’s formula Google 20% excess capacity 3M 155 excess capacity
  10. Fast feedback loops are critical Example of developer feedback within one day versus 90 days.
  11. Example of starbucks coffee line with 20 people in line, processing 5 people every 1 minute, means I’ll get my coffee in 5 minutes.
  12. If you know the cost of delay, these is an easy decision.
  13. Gantt and Pert charts couldn’t tells queue challenges because they are time-based The Kanban board is work item status based and thus provide an instant visual representation of where the bottleneck might be. What options are available to the developer looking for work?
  14. Comparing COD to duration of effort give you object project priority